Accounting Services of Yorkhttp://accountingservicesofyork.com
We'll Count the Beans... You enjoy the coffeeWed, 16 May 2018 15:56:06 +0000en-UShourly138936613Taxpayers who usually itemize deductions should check their withholding to avoid tax surpriseshttp://accountingservicesofyork.com/?p=3349
http://accountingservicesofyork.com/?p=3349#respondWed, 16 May 2018 15:56:06 +0000http://accountingservicesofyork.com/?p=3349WASHINGTON – The Internal Revenue Service encourages taxpayers who typically itemized their deductions on Schedule A of the Form 1040 to use the Withholding Calculator this year to perform a “paycheck checkup.” People who have itemized before may be affected by changes from the Tax Cuts and Jobs Act. Taxpayers who itemize should use the […]

]]>WASHINGTON – The Internal Revenue Service encourages taxpayers who typically itemized their deductions on Schedule A of the Form 1040 to use the Withholding Calculator this year to perform a “paycheck checkup.”
People who have itemized before may be affected by changes from the Tax Cuts and Jobs Act. Taxpayers who itemize should use the IRS Withholding Calculator to make sure their employers are withholding the appropriate amount of tax from their paychecks for their financial situation.
The law changes are effective in 2018 and affect the tax returns taxpayers will file in 2019. The new law makes a number of major changes, including:

– Limiting the deductions for state and local taxes
– Limiting the deduction for home mortgage interest in certain cases (see IR-2018-32 for more information)
– Excluding deductions for employee business expenses, tax preparation fees and investment expenses, including investment management fees, safe deposit box fees and investment expenses from pass-through entities

The Tax Cuts and Jobs Act nearly doubled standard deductions and changed several itemized deductions. Some individuals who formerly itemized may now find it more beneficial to take the standard deduction, and this could affect how much a taxpayer needs to have their employer withhold from their pay. Also, even those who continue to itemize deductions should check their withholding because of changes made by the new tax law.
The IRS urges taxpayers to complete their “paycheck checkup” as early as possible so that if a withholding amount adjustment is necessary, there’s more time for withholding to take place evenly throughout the year. Waiting means there are fewer pay periods to make the tax changes – which could have a bigger impact on each paycheck.

Having too little tax withheld could result in an unexpected tax bill or penalty at tax time in 2019. Adjusting withholding after a “paycheck checkup” can also prevent employees from having too much tax withheld. With the average refund topping $2,800, some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks.

Using the Withholding Calculator
When taxpayers use the Withholding Calculator, they can indicate whether they are taking the standard deduction or itemizing their deductions. If they are itemizing, they’ll enter estimates of their deductions. The Withholding Calculator applies the new law to these amounts when figuring the user’s withholding.
It’s helpful if taxpayers have their completed 2017 tax return when using the Withholding Calculator. It can help them estimate the amount of income, deductions, adjustments and credits to enter. They’ll also need their most recent pay stubs. These help the calculator compute the employee’s withholding so far this year.
Calculator results depend on the accuracy of information entered. If a taxpayer’s personal circumstances change during the year, they should return to the calculator to check whether their withholding should be changed.
Employees can use the results from the Withholding Calculator to help determine if they should complete a new Form W-4 and, if so, what information to put on a new Form W-4.
The Withholding Calculator does not request personally-identifiable information, such as name, Social Security number, address or bank account numbers. The IRS does not save or record the information entered on the calculator. As always, taxpayers should watch out for tax scams, especially via email or phone and be alert to cybercriminals impersonating the IRS. The IRS does not send emails related to the Withholding Calculator or the information entered.
Adjusting withholding
Employees who need to complete a new Form W-4 should submit it to their employers as soon as possible. Employees with a change in personal circumstances that reduce the number of withholding allowances must submit a new Form W-4 with corrected withholding allowances to their employer within 10 days of the change.
As a general rule, the fewer withholding allowances an employee enters on the Form W-4, the higher their tax withholding will be. Entering “0” or “1” on line 5 of the W-4 means more tax will be withheld. Entering a bigger number means less tax withholding, resulting in a smaller tax refund or potentially a tax bill or penalty.

]]>http://accountingservicesofyork.com/?feed=rss2&p=334903349Apr 24, 2018 – IRS Funding Informationhttp://accountingservicesofyork.com/?p=3335
Wed, 25 Apr 2018 13:09:45 +0000http://accountingservicesofyork.com/?p=3335The IRS releases refunds each weekday throughout the year. We provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year. As of today, the estimated percentage of refunds not yet released by the IRS are: – for […]

]]>The IRS releases refunds each weekday throughout the year. We provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year.

As of today, the estimated percentage of refunds not yet released by the IRS are:

– for returns filed 02/22 and prior, most refunds have been released by the IRS.

– for returns filed 02/23 – 03/24, approximately 10% have not yet been released by the IRS.

– for returns filed 03/25 – 03/31, approximately 15% have not yet been released by the IRS.

– for returns filed 04/01 – 04/08, approximately 20% have not yet been released by the IRS.

– for returns filed 04/09 – 04/10, approximately 25% have not yet been released by the IRS.

– for returns filed 04/11 – 04/11, approximately 50% have not yet been released by the IRS.

– for returns filed 04/12 – 04/14, approximately 55% have not yet been released by the IRS.

– for returns filed 04/15 – 04/16, approximately 60% have not yet been released by the IRS.

– for returns filed 04/17 – 04/17, approximately 85% have not yet been released by the IRS.

– for returns filed 04/18 and beyond, the IRS has released very few refunds.

Apr 23, 2018 – IRS Funding Information

The IRS releases refunds each weekday throughout the year.
We provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year.

As of today, the estimated percentage of refunds not yet released by the IRS are:

– for returns filed 02/21 and prior, most refunds have been released by the IRS.

– for returns filed 02/22 – 03/23, approximately 10% have not yet been released by the IRS.

– for returns filed 03/24 – 03/27, approximately 15% have not yet been released by the IRS.

– for returns filed 03/28 – 04/03, approximately 20% have not yet been released by the IRS.

– for returns filed 04/04 – 04/04, approximately 30% have not yet been released by the IRS.

– for returns filed 04/05 – 04/08, approximately 35% have not yet been released by the IRS.

– for returns filed 04/09 – 04/09, approximately 40% have not yet been released by the IRS.

– for returns filed 04/10 – 04/10, approximately 50% have not yet been released by the IRS.

– for returns filed 04/11 – 04/12, approximately 75% have not yet been released by the IRS.

– for returns filed 04/13 – 04/16, approximately 80% have not yet been released by the IRS.

– for returns filed 04/17 and beyond, the IRS has released very few refunds.

]]>3335Apr 11, 2018 – IRS Funding Informationhttp://accountingservicesofyork.com/?p=3329
Thu, 12 Apr 2018 16:33:29 +0000http://accountingservicesofyork.com/?p=3329The IRS releases refunds each weekday throughout the year. we provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year. As of today, the estimated percentage of refunds not yet released by the IRS are: – for […]

]]>The IRS releases refunds each weekday throughout the year. we provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year.

As of today, the estimated percentage of refunds not yet released by the IRS are:

– for returns filed 02/13 and prior, most refunds have been released by the IRS.

– for returns filed 02/14 – 03/11, approximately 10% have not yet been released by the IRS.

– for returns filed 03/12 – 03/19, approximately 15% have not yet been released by the IRS.

– for returns filed 03/20 – 03/27, approximately 20% have not yet been released by the IRS.

– for returns filed 03/28 – 03/28, approximately 30% have not yet been released by the IRS.

– for returns filed 03/29 – 03/30, approximately 45% have not yet been released by the IRS.

– for returns filed 03/31 – 04/03, approximately 50% have not yet been released by the IRS.

– for returns filed 04/04 – 04/04, approximately 70% have not yet been released by the IRS.

– for returns filed 04/05 – 04/05, approximately 95% have not yet been released by the IRS.

– for returns filed 04/06 and beyond, the IRS has released very few refunds.

Apr 10, 2018 – IRS Funding Information

The IRS releases refunds each weekday throughout the year. we provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year.

As of today, the estimated percentage of refunds not yet released by the IRS are:

– for returns filed 02/13 and prior, most refunds have been released by the IRS.

– for returns filed 02/14 – 03/10, approximately 10% have not yet been released by the IRS.

– for returns filed 03/11 – 03/19, approximately 15% have not yet been released by the IRS.

– for returns filed 03/20 – 03/27, approximately 20% have not yet been released by the IRS.

– for returns filed 03/28 – 03/28, approximately 45% have not yet been released by the IRS.

– for returns filed 03/29 – 04/03, approximately 50% have not yet been released by the IRS.

– for returns filed 04/04 – 04/04, approximately 95% have not yet been released by the IRS.

– for returns filed 04/05 and beyond, the IRS has released very few refunds.

]]>3329Mar 26, 2018 – IRS Funding Informationhttp://accountingservicesofyork.com/?p=3317
Tue, 27 Mar 2018 13:44:38 +0000http://accountingservicesofyork.com/?p=3317The IRS releases refunds each weekday throughout the year. We provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year. As of today, the estimated percentage of refunds not yet released by the IRS are: – for […]

]]>The IRS releases refunds each weekday throughout the year. We provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year.

As of today, the estimated percentage of refunds not yet released by the IRS are:

– for returns filed 01/24 and prior, most refunds have been released by the IRS.

– for returns filed 01/25 – 02/23, approximately 10% have not yet been released by the IRS.

– for returns filed 02/24 – 03/06, approximately 15% have not yet been released by the IRS.

– for returns filed 03/07 – 03/07, approximately 25% have not yet been released by the IRS.

– for returns filed 03/08 – 03/12, approximately 30% have not yet been released by the IRS.

– for returns filed 03/13 – 03/13, approximately 40% have not yet been released by the IRS.

– for returns filed 03/14 – 03/18, approximately 70% have not yet been released by the IRS.

– for returns filed 03/19 – 03/19, approximately 75% have not yet been released by the IRS.

– for returns filed 03/20 and beyond, the IRS has released very few refunds.

Mar 23, 2018 – IRS Funding Information

The IRS releases refunds each weekday throughout the year. We provide the percentage of refunds that have not yet been funded by the IRS. We update these funding statistics at approximately 2:00pm eastern each weekday throughout the year.

As of today, the estimated percentage of refunds not yet released by the IRS are:

– for returns filed 01/21 and prior, most refunds have been released by the IRS.

– for returns filed 01/22 – 02/20, approximately 10% have not yet been released by the IRS.

– for returns filed 02/21 – 03/06, approximately 15% have not yet been released by the IRS.

– for returns filed 03/07 – 03/07, approximately 25% have not yet been released by the IRS.

– for returns filed 03/08 – 03/11, approximately 30% have not yet been released by the IRS.

– for returns filed 03/12 – 03/13, approximately 40% have not yet been released by the IRS.

– for returns filed 03/14 – 03/18, approximately 70% have not yet been released by the IRS.

– for returns filed 03/19 and beyond, the IRS has released very few refunds.

]]>3317Updated Withholding Calculator Reflects Changes in New Tax Lawhttp://accountingservicesofyork.com/?p=3314
Mon, 26 Mar 2018 21:14:56 +0000http://accountingservicesofyork.com/?p=3314To help taxpayers, the IRS updated the special Withholding Calculator tool on IRS.gov to reflect changes in the Tax Cuts and Jobs Act passed in December. With most employees seeing withholding changes in their paychecks, the IRS recommends taxpayers use the Withholding Calculator to do a “paycheck checkup.” This will help taxpayers check that they […]

With most employees seeing withholding changes in their paychecks, the IRS recommends taxpayers use the Withholding Calculator to do a “paycheck checkup.” This will help taxpayers check that they are having the correct amount of income tax withheld from their paychecks.

Doing a checkup can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time in 2019. Some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks, which would reduce their tax refund next year.

The IRS encourages everyone to check their withholding as soon as possible, but it’s especially important for these people to use the Withholding Calculator to make sure they have the right amount of tax withheld:

Two-income families

People with two or more jobs at the same time or who only work for part of the year

People who claim credits such as the Child Tax Credit

People who claim older dependents, including children age 17 or over

People who itemized deductions in 2017

People with high incomes and more complex tax returns

People with large tax refunds or large tax bills for 2017

Remember, the Withholding Calculator does not ask the user for personally identifiable information, such as name, social security number, address, or bank account numbers. The IRS does not save or record the information the taxpayer enters in the calculator.